June 23, 2025
Since the end of 2023, due to the geopolitical conflicts and armed attacks in the Middle East, the risks in the Red Sea have intensified, forcing most ships to divert around the Cape of Good Hope in Africa, resulting in a sharp decline in the volume of ships in the Suez Canal. This change not only prolongs the voyage time, but also pushes up global shipping costs.
Recently, the situation has ushered in a key turning point. An ultra-large container ship owned by a world-leading large shipping company successfully passed through the Suez Canal, becoming the first giant ship to successfully pass through the waterway in months. The ship also benefited from the 15% toll discount introduced by the canal authority. This policy is for container ships with a net tonnage of more than 130,000 tons (whether fully loaded or empty). It took effect on May 15 and is valid for 90 days. No additional application is required to enjoy it automatically. The canal management agency emphasized that this ship is the first large ship to pass from the Bab el-Mandeb Strait and enjoy this discount.
It is worth noting that the large shipping company was one of the last mainstream operators to suspend the Red Sea route, and has recently been actively preparing to return to the area. Data from the management agency showed that in the first half of 2025, it ranked first in the industry in terms of the number and total tonnage of ships passing through the Suez Canal. Subsequently, two other medium-sized ships under the company also successfully passed through the canal on the 17th of this month.
This progress indicates that the Red Sea route may be gradually restarted. If the security situation stabilizes, more ships and shipping companies will try to resume passage, thereby shortening the transportation time of the Asia-Europe route, reducing freight rate fluctuations, and having a profound impact on the efficiency of the global supply chain.
